Backwards Approximate Dynamic Programming for Wind Power Plants with Hybrid Energy Storage Systems

International Journal of Production Economics (IJPE) 238 (2021), 108155, doi: 10.1016/j.ijpe.2021.108155

31 Pages Posted: 10 May 2021 Last revised: 14 Apr 2022

See all articles by Benedikt Finnah

Benedikt Finnah

University of Duisburg-Essen - Mercator School of Management

Jochen Gönsch

University of Duisburg-Essen - Mercator School of Management

Date Written: May 3, 2021

Abstract

On most modern energy markets, electricity is traded in advance and a power producer has to commit to deliver a certain amount of electricity some time before the actual delivery. This is especially difficult for power producers with renewable energy sources that are stochastic (like wind and solar). Thus, short-term electricity storages like batteries are used to increase flexibility. By contrast, long-term storages allow to exploit price fluctuations over time, but have a comparably bad efficiency over short periods of time.

In this paper, we consider the decision problem of a power producer who sells electricity from wind turbines on the continuous intraday market and possesses two storage devices: a battery and a hydrogen based storage system. The problem is solved with a backwards approximate dynamic programming algorithm with optimal computing budget allocation. Numerical results show the algorithm’s high solution quality. Furthermore, tests on real-world data demonstrate the value of using both storage types and investigate the effect of the storage parameters on profit.

Keywords: renewable energy, hydrogen storage, hybrid energy storage system, backwards approximate dynamic programming, optimal computing budget allocation

Suggested Citation

Finnah, Benedikt and Gönsch, Jochen, Backwards Approximate Dynamic Programming for Wind Power Plants with Hybrid Energy Storage Systems (May 3, 2021). International Journal of Production Economics (IJPE) 238 (2021), 108155, doi: 10.1016/j.ijpe.2021.108155, Available at SSRN: https://ssrn.com/abstract=3840748

Benedikt Finnah

University of Duisburg-Essen - Mercator School of Management ( email )

Lotharstraße 65
Duisburg, Nordrhein-Westfalen 47057
Germany

Jochen Gönsch (Contact Author)

University of Duisburg-Essen - Mercator School of Management ( email )

Lotharstraße 65
Duisburg, Nordrhein-Westfalen 47057
Germany
+49 203 379 - 2777 (Phone)
+49 203 379 - 1760 (Fax)

HOME PAGE: http://udue.de/goensch

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